This week was originally super bullish. The "Clear Act" has strong supporters on certain leading compliant platforms, but suddenly they turned against it.

Their reason for switching is straightforward — the bill has undergone multiple revisions and has now become a shield for traditional finance, while imposing heavy restrictions on native crypto companies.

What are the four main sticking points?

First is the stablecoin section. The latest draft imposes restrictions on the earnings of stablecoin holders. For example, the rewards you earn annually from holding USDC on an exchange are now being cut. This may seem minor, but it has a significant impact — stablecoin incentives were originally a powerful tool to attract user deposits, and exchanges relied on this to earn interest income. With the new regulations, this route is blocked. Traditional banks, on the other hand, breathe a sigh of relief.

Second is the issue of tokenized assets. The bill could significantly restrict the issuance and trading of tokenized stocks and similar assets, shifting more responsibility onto issuers. A leading platform has been promoting on-chain ecosystems, but now costs will skyrocket, and the flexibility for innovation will be locked down.

Additionally, there are regulatory provisions concerning DeFi. Some clauses in the draft are interpreted as expanding the U.S. government’s access to DeFi data and regulatory scope, which means entrepreneurs’ space for innovation is being squeezed, while government authority on the chain expands accordingly.

With these three strikes, the bill, which initially looked promising, has become a dilemma.